New EU Passenger Compensation rules
New European rules have come in to force today which will hold airlines accountable for the level of customer service provided during times of disruption and improve the experience of the travelling public. Despite UK Government opposition, the new compensation rules will be applicable to all flights operated by European airlines to or from a European airport, and any flight departing an EU destination. Various levels of compensation will have to be paid according to whether the flights are delayed or cancelled.
For example, should an airline overbook the flight capacity for a short haul flight which results in a passenger being “bumped” onto another later flight, the airline responsible will have to pay £173 (€250) – regardless of the original ticket cost. With many low cost airlines only charging an average of £50 a ticket, the new European rules are being criticised as “unfairly biased against the airline industry”, and “damaging”.
The new rules will also mean that delayed passengers could be entitled to free meals, phone calls and even overnight hotel accommodation. Furthermore, the guidelines indicate that passengers should be entitled to some form of recompense if their flight is delayed by up to two hours (for short-haul flights); three hours (for medium range flights); or four hours (for long-haul flights). Where a flight is delayed by more than five hours, passengers will be entitled to a refund of their ticket. Failure by an airline to comply with the new rules could result in a £5,000 fine per passenger.
However, the legislation notes that airlines do not have to offer compensation if flights are cancelled or delayed due to "extraordinary circumstances". Some Airlines fear that "extraordinary circumstances" may not include bad weather, security alerts or strikes - events which are outwith their control. The new legislation has been criticised by the European Regions Airline Association (ERAA) that it may mislead passengers into believing airlines will pay out where flights are delayed due to bad weather. There are a number of "grey areas" which need to be made clear.
Consumer campaigners and airline passengers welcomed the new rules saying that they will make budget airlines clean up their act and treat their customers better.
Passengers commented that it could mean the end of the low cost airline as ultimately the increased costs for the airline would be passed on to the consumer.
